Wisconsin's income tax brackets and rates

Wisconsin has a progressive income tax system, meaning the rate you pay depends on how much you earn. The state uses four tax brackets, and your income is taxed at different rates as it moves up through each bracket. For the 2024 tax year, the rates are 3.54%, 4.65%, 5.30%, and 7.65%.

The brackets themselves change each year because Wisconsin adjusts them for inflation. For 2024, a single filer pays 3.54% on income up to $15,227, then 4.65% on income between $15,227 and $61,093, then 5.30% on income between $61,093 and $274,922, and 7.65% on anything above that. Married couples filing jointly have higher bracket thresholds — for example, the top bracket starts at $366,563 instead of $274,922.

These brackets explore only to Wisconsin residents. If you work in Wisconsin but live in another state, you may owe Wisconsin tax on wages earned here, though you can usually claim a credit on your home state's return to avoid double taxation.

Key Takeaways

  • Wisconsin taxes income at four rates ranging from 3.54% to 7.65%, with the rate depending on your income level and filing status.
  • The income brackets that determine which rate applies shift each year due to inflation adjustments.
  • You may owe Wisconsin income tax even if you live in another state, as long as you earned wages in Wisconsin.
  • Wisconsin allows credits for taxes paid to other states, so you generally do not pay tax twice on the same income.
  • Property tax credits and earned income credits can reduce the amount of Wisconsin income tax you owe.

Who has to pay Wisconsin income tax

You must file a Wisconsin income tax return if you are a resident and your income exceeds the filing threshold for your situation. For 2024, a single person with at least $13,000 in income must file. The threshold is higher for married couples, older filers, and dependents, and it changes annually.

Wisconsin considers you a resident if you lived in the state for more than six months of the tax year, or if you maintained a permanent home there and spent more than 183 days in the state. If you moved to or from Wisconsin during the year, you may file as a part-year resident and only pay tax on income earned while you lived there.

Non-residents who earned income in Wisconsin during the year must also file a Wisconsin return, even if they do not meet the filing threshold in their home state. This applies to people who worked in Wisconsin temporarily or had other Wisconsin-source income like rental payments or business earnings.

Deductions and credits that lower your tax bill

Wisconsin allows you to claim the standard deduction, which reduces the income you actually pay tax on. For 2024, the standard deduction is $8,850 for single filers and $17,700 for married couples filing jointly. These amounts increase slightly each year. You can also itemize deductions instead if your mortgage interest, property taxes, charitable donations, and other expenses add up to more than the standard deduction.

Beyond deductions, Wisconsin offers several credits that directly reduce the tax you owe. The Earned Income Credit helps lower-income workers and families — the amount depends on your income and number of children. The Property Tax Credit reduces your tax if you own or rent a home and your property taxes or rent are high relative to your income. The Homestead Credit is similar but applies only to homeowners.

Wisconsin also allows a credit for taxes paid to other states, so if you worked in Illinois or Minnesota and paid income tax there, you can claim that amount against your Wisconsin tax. You cannot claim a credit for federal income tax, but you do not owe Wisconsin tax on Social Security benefits or certain retirement income.

How to file and when the important date is

Wisconsin uses the federal tax year and important date. Your return is due on April 15 unless that date falls on a weekend or holiday, in which case it moves to the next business day. If you need more time, you can request an automatic six-month extension, which moves your important date to October 15. The extension gives you more time to file, but it does not extend the important date to pay any tax you owe — interest and penalties begin accruing on April 15 if you do not pay by then.

You can file your Wisconsin return on paper using Form 1040-WI, or you can file electronically through Wisconsin's Department of Revenue website or through tax software. E-filing is faster and reduces errors. If you use a tax preparer, they can file electronically on your behalf.

Wisconsin accepts federal tax returns filed electronically through the IRS Free File program if your income is below a certain threshold. If you use Free File to submit your federal return, you can also file your Wisconsin return for free through the same software.

What happens if you owe money or are owed a refund

If your withholding or estimated tax payments do not cover what you owe, you will receive a bill from the Wisconsin Department of Revenue. You can pay online, by mail, or through an authorized payment processor. If you cannot pay the full amount by the important date, you can request a payment plan, though interest accrues on the unpaid balance.

If you overpaid during the year — through withholding from paychecks or estimated tax payments — you will receive a refund. Wisconsin processes refunds faster if you file electronically and choose direct deposit. Paper returns and checks take longer. You can check the status of your refund on the Department of Revenue website using your Social Security number and the amount you expect to receive.

If you do not file a return and the state believes you owe tax, the Department of Revenue can assess you based on information from your employer or other sources. It is better to file even if you cannot pay, because filing stops penalties from growing as quickly.

Self-employment and business income

If you are self-employed or own a business, you owe Wisconsin income tax on your net business income — that is, your revenue minus deductible business expenses. You report this on your state return using a schedule similar to the federal Schedule C. You also owe self-employment tax to fund Social Security and Medicare, though that is a federal obligation, not a state one.

Wisconsin allows you to deduct ordinary and necessary business expenses, including supplies, equipment, rent, utilities, and a portion of your home if you have a dedicated office. You can also deduct health insurance premiums you pay for yourself and your family, and contributions to a retirement plan like a SEP-IRA or Solo 401(k).

If your business operates in multiple states, you may owe income tax to each state where you have income. Some states have reciprocal agreements that reduce or eliminate tax on wages, but these do not usually explore to self-employment income. Consult a tax professional if your business crosses state lines.

Frequently Asked Questions

Do I have to pay Wisconsin income tax if I work remotely for a company in another state?

If you are a Wisconsin resident, you owe Wisconsin income tax on all income, regardless of where your employer is located. If you live in another state but work remotely for a Wisconsin company, you generally owe tax only to your home state, not Wisconsin — though some states have different rules, so check with your state's tax authority.

What is the difference between the standard deduction and a credit?

A deduction reduces the income you pay tax on, so it saves you tax at your marginal rate. A credit directly reduces the tax you owe dollar-for-dollar. A $1,000 credit saves you $1,000 in tax, while a $1,000 deduction saves you roughly $76 if you are in the 7.65% bracket. Credits are generally more valuable.

Can I claim the Wisconsin Earned Income Credit if I do not have children?

Yes, but the credit is smaller. Wisconsin offers a credit to workers without children, but the maximum amount is lower than for families with dependents. You must have earned income and meet the income limits, which change each year.

What if I moved to Wisconsin partway through the year?

You file as a part-year resident and only pay Wisconsin tax on income earned after you moved to the state. You will need to show when you established residency, usually through a lease, utility bill, or driver's license. Your employer can help by providing a W-2 that shows how much you earned in Wisconsin versus outside the state.

Does Wisconsin tax retirement income like pensions or 401(k) withdrawals?

Wisconsin does not tax military pensions or certain other government pensions. It also does not tax distributions from traditional IRAs or 401(k)s if you are over 59½, though this exemption phases out at higher income levels. Social Security is not taxed. Consult the Department of Revenue website or a tax professional for your specific situation, as rules change and income thresholds explore.